Iberia reacts to strike threat as talks fail

Iberia, the Spanish airline operated by International Consolidated Airlines Group (otherwise known as IAG), has deemed the strikes convoked by labour unions to be excessive and an intolerable threat to the company, its customers, and society.

Iberia, the Spanish airline operated by International Consolidated Airlines Group (otherwise known as IAG), has deemed the strikes convoked by labour unions to be excessive and an intolerable threat to the company, its customers, and society.

The airline has reacted to the labour unions' decision on Wednesday after talks in an arbitrage procedure failed to produce any agreements.

According to Iberia, its latest proposal translated into less lay-offs and smaller salary cuts than initially planned. Additionally, it included the use of early retirements instead of layoffs.

"At this challenging moment that Iberia is going through, the announcement of strikes only worsens the company's difficult situation. The company will use legally-available mechanisms to return to profitability and become viable," the company explained.

"Once the strikes are confirmed, Iberia's priority will be to provide customers with solutions and alternatives as it has done in the past."

VUELING TAKEOVERIn November, IAG launched an offer of €7.0 per share for low-cost airline Vueling through its wholly-owned subsidiary Veloz Holdco.

In a filing with Spanish market regulator CNMV on Wednesday, IAG announced that Veloz Holdco "has resolved not to seek that the consideration offered in its tender offer for the acquisition of Vueling Airlines, S.A. ('Vueling') of €7 per share qualifies as an equitable price."

IAG said that it ruled out raising the bid and that it could waive its condition of having a minimum acceptance of 90% of non-IAG shareholders. Nonetheless, it has no plans to delist the remaining shares.

LS

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021